Training Program Session Details

Mid- to senior-level staff from the People's Bank of China and China Banking and Insurance Regulatory Commission with responsibility for supervision, resolution, and the operation of financial safety nets.

Participants are expected to have a degree in economics, finance, accounting or law, or have equivalent experience in these fields.

This course, presented by the IMF's Legal and Monetary and Capital Markets Departments, provides an overview of legal and operational issues related to the restructuring and resolution of weak banks. Topics discussed during the course include Institutional framework and effective crisis preparedness: agencies' roles and responsibilities; interagency coordination; capacity building; and communications. Identification and supervision of weak banks: common causes of banking problems and how to identify them; tools and strategies for identifying problem banks; early intervention tools; and role of recovery planning. Designing effective resolution regimes: objectives; resolution authorities and their mandates; triggers for initiating resolution proceedings; resolution powers and safeguards; treatment of financial contracts; role of valuations in resolution; legal remedies and judicial action; and resolution funding mechanisms. Bank resolution in practice: assessing systemic importance and the economic impact of bank failures; resolving systemic and non-systemic institutions; bank intervention and liquidation procedures; role of deposit insurance agency and benefits of depositor preference; resolution planning; operational continuity in resolution; and cross-border resolution issues. Recapitalizing banks with public funds outside of resolution: rationale for recapitalizing banks with public funds; good practices for effective recapitalization strategies; recapitalization instruments; and financing considerations.